Resumed lending for Russian private projects would be a positive decision for Russia and a breakthrough in relations with the European Bank for Reconstruction and Development

Director of the Department for International Financial Relations of the Finance Ministry Andrey Bokarev

SHANGHAI, July 21. /TASS/. Suspension of the European Bank for Reconstruction and Development (EBRD) work with Russian projects increases risks and causes real financial losses for the bank, Director of the Department for International Financial Relations of the Finance Ministry Andrey Bokarev told journalists on Thursday.

"These are not just loud political statements. In this particular case, due to suspension of work on the Russian projects, the bank is actually suffering losses and creates additional risks for itself," he said.

"The EBRD might use a more flexible pattern. For example, they do not finance projects and companies with government participation but ready to work in the private sector. If we manage to break the deadlock at least in this regard, this may be viewed as a major positive step," he said.

According to Bokarev, until recently one-third of the Bank's portfolio was tied to Russia. "Even now, when our share is about 10%, based on the results of last year profit from the Russian projects accounted for one third of the Bank's profit for the year," he said.

Bokarev believes that the replacement of Russian projects by investment projects in other countries and regions is not quite interchangeable for EBRD. "It is clear that the work in the Eastern Mediterranean region (North Africa and the Middle East) cannot provide a sufficient level of profitability and increases the bank's risks," he said.

He added he was not taking into account the political context; the sharp increase of the portfolio for Ukraine in the current economic situation in the country does not generate guarantees of additional income for the bank.